Nicaragua News Service March 13-19, 1994 Vol. 2, No. 11 by Colleen Littlejohn Major news stories of the week: 1. Producers march to protest government economic policies 2. Chief of IMF visits Nicaragua 3. Evictions are the order of the day 4. IDB signs $39 million loan for reactivation of production 5. Assistant Secretary Alexander Watson on official visit 6. Witnesses testify to corruption in Managua city government 7. Disarming process continues, but... 8. Nicaragua connected to INTERNET -------------------------------------------------------------------- 1. Producers march to protest government economic policies Approximately 20,000 farmers protested last week in front of President Chamorro's office as they demanded that the government change its economic policies and make more flexible the conditions imposed on the country by the multilateral funding agencies. The protest was called by the National Agricultural Emergency Commission (CONEMAG), made up of representatives of agricultural associations of all political colors. Included among the demands of the marchers were: -- flexibility in credit policies; -- respect for cooperative property; -- lower interest rates; -- land titles; -- agricultural debt restructuring. The government's initial response to the march was to offer a partial debt restructuring for coffee growers but during the march itself, CONEMAG leaders announced that no partial solutions would be accepted and that the debt restructuring would have to cover all agricultural sectors. 2. Chief of IMF visits Nicaragua Michael Camdessus, Director General of the International Monetary Fund (IMF) was in Managua last week on an official visit, the first time the head of the IMF has visited a country undergoing a program of structural adjustment required by the IMF. Camdessus remained inflexible on the principal conditions which the IMF is demanding Nicaragua to agree to in signing a special agreement which would allow the IMF to lend millions of dollars to Nicaragua for productive reactivation. Camdessus did, however, state that more resources would be made available for social compensation programs such as the Emergency Social Investment Fund (FISE), the temporary employment programs of the Ministry of Social Action (MAS), and the fund to compensate public employees who choose to "voluntarily" leave their jobs. Camdessus, in his final press conference before departing for Washington, stated that he thought that the Emergency Support Adjustment Facility (ESAF) would be signed by the Nicaraguan government and the IMF by early June of this year. If and when signed, the IMF would then "act like Nicaragua's lawyer in order to convince the Club of Paris to condone Nicaragua's debt to them, during their meeting in Paris, in June of this year." Meanwhile, the FSLN, after a seven hour meeting of the Sandinista Assembly, ratified the opinion expressed to Camdessus in a bilateral meeting, that the FSLN could not "approve the signing of the special agreement with the IMF" given its characteristics and conditions. "The nation can not stand up against the type of program that they want to impose," stated the FSLN communique, which went on to support the demands of cattle ranchers, producers, businesspersons, etc. who are demanding that the government change its economic policies in order to favor production. (Barricada 3/14, 3/15) 3. Evictions are the order of the day In the past three weeks, over 1,000 families have been evicted by judicial orders from their homes, despite that fact that many of them had already obtained a legalization certificate for the Office of Territorial Ordering (OOT). According to the Nicaraguan Community Movement, another 1,194 families are in immediate danger of being evicted. In Managua's oriental market, one family was thrown out of their home by a local judge, accompanied by ten policemen and eight masked men, employees of the people reclaiming the house. Later on that night, a "solidarity brigade" of the Community Movement retook the home and reinstated the family who had been evicted. Meanwhile the desperation for land to erect family housing continues to grow. More than 50 riot police were used to evict over 100 families who had taken over land located in the ruins of downtown Managua. The land in the ruins of the pre-earthquake downtown legally belongs to the Presidency of the Republic. The evictions or the threat of evictions are touching former contras as well as those who received homes and lots under Sandinista land reform measures. Seventeen families of the ex-Resistance, organized in an agricultural cooperative in Nagarote, Region II are being threatened with eviction by Sergio and Marcos Narvaez, both high level officials of the Chamorro government. The "Maximum Council of the Nicaraguan Resistance" met with the government for two days last week to discuss this case and that of 300 other properties which were assigned to ex-contra members after their disarmament four years ago. The Council is demanding that these members be immediately granted their land titles. The Nicaraguan Supreme Court has agreed to form, with the National Assembly, a joint commission to investigate the recent rise in evictions. Next week a new law which would prevent evictions of any kind in the country as long as the property question is not solved as a whole, will be introduced for discussion in the National Assembly. The draft of the law contemplates jail sentences for those judges found guilty of violating national laws or abusing their judicial functions. Enrique Picado, head of the Community Movement, announced that at the same time, those threatened with eviction in the different townships and departments will be organizing delegations and demonstrations to pressure the National Assembly to pass the temporary eviction restraining law. (Barricada 3/18) 4. IDB signs $39 million loan for reactivation of production Enrique Iglesias, president of the InterAmerican Development Bank (IDB) was the third important visitor to Nicaragua this week, but unlike his counterpart in the IMF, Iglesias declared that the IMF should be more flexible in the economic program designed for Nicaragua and that that program should "function with the needs of the country." Iglesias came to Nicaragua to participate in the bank's annual governor's meeting and took advantage of his visit to sign a $39 million loan for Nicaragua which will be used to strengthen agriculture and the small and medium sized business sector. Commenting upon the visit of Michael Camdessus, Iglesias was however, diplomatic in his observations. "His visit is a demonstration that he wants to more closely understand the country's problems and adapt the program to the country's needs." Iglesias also announced that the IDB is preparing a loan package of over $500 million for the next three years. These loans will be channeled toward the Nicaraguan private sector in order to strengthen investments which will contribute to the capitalization of Nicaraguan enterprises. He also stated that the bank would give "priority" to social programs in health and education and women's programs. Iglesias was optimistic about the prospects for economic recovery. In the press conference at the airport before his return to Washington, he made the following statement, "The problems are difficult, but as I see it, there seems to be an opportunity to initiate a stage of sustained growth...The costs of adjustment are serious and hard, but the disadjustments are worse... I think that the worst is over, and this is not an irresponsible optimistic viewpoint." (Barricada 3/19, 3/20; La Prensa 3/19) 5. Assistant Secretary Alexander Watson on official visit Assistant Secretary of State for InterAmerican Affairs Alexander Watson, on his first official visit to Nicaragua, called on the Nicaraguan government to deal with the situation of American citizens whose property had been confiscated during the Sandinista government by either returning their property or providing adequate indemnization. Watson, in a talk given to the Nicaraguan-American Chamber of Commerce, also stated that the Clinton administration has accepted the FSLN "as a legitimate political force in Nicaragua with all the rights and obligations of any political party in a democracy that proposes to utilize peaceful and legitimate means to effect political change." Watson also added that the United States would encourage the multilateral financial institutions to "review the levels and effectiveness" of their loans to Nicaragua. He stated however that it was "essential" for Nicaragua to sign the special emergency funds agreement with the IMF. On political issues, Watson stated that the US government was pleased with the solution to the National Assembly conflict, the recently concluded elections on the Atlantic Coast, and the peace agreements between the government and the 3-80 Front. Watson also spoke of the United State's "strong support" for the government of Violeta Chamorro and the consolidation of democracy in Nicaragua. (Barricada 3/16) 6. Witnesses testify to corruption in Managua city government Arnaldo Aleman, mayor of Managua is still on the hot seat as witnesses to several scams involving Aleman and his closest associates come forward to testify in judicial hearing taking place as a result of charges of corruption brought against him by FSLN city council member, Monica Baltedano. One witness testified that the mayor's office charged a local hotel owner 35,000 cordobas ($7,000 at that time) as a "collaboration" toward the cost of paving the road, whose repairs had already been covered by the municipal budget. The money never reached the bank accounts of the city. One of those involved in the scandal confessed to having received 60,000 cordobas ($12,000) and a truck in return for not denouncing the abuse. Another city councilperson, Agustin Jarquin, of the Christian Democratic Party also testified against Aleman. Jarquin stated that although the city council had ordered internal audits on various of the municipal projects in which the mayor or his allies are suspected of abuse, the results of those audits have never been made available to the city council. Instead, several of the auditors have been fired for being "Sandinista infiltrators." Another former municipal employee, fired last week, testified that the mayor's office tried to pass off an Italian donation of spare parts as private property of a municipal official. This week, Baltedano's lawyers are trying to get a court order to stop Aleman from leaving the country due to his on-going trial for which he has yet to make an appearance. (Barricada 3/19) 7. Disarming process continues, but... Jose Angel Talavera, better known as El Chacal, leader of the 3-80 Front, was also in Managua last week to continue to press the government to fulfill its promises to his forces, which should be completely disarmed by the 8th of April. Talavera met with Alfredo Mendieta, Minister of Government to discuss the acquisition of land and special emergency programs so that his men won't be left totally abandoned after the process is completed. Meanwhile, the Punitive Forces of the Left (FPI) have threatened to take up arms again if their leader, Frank Ibarra Silva, is not immediately released from prison. Ibarra, who was convicted of killing the president of the Association of Confiscated, Arges Sequiera Mangas, had been granted amnesty with his troops several months ago. An appeals court in Leon overturned his amnesty and sentenced him to 20 years in prison. In their communique, the FPI stated that they had laid down their arms in order to contribute to the pacification of the country. They also demanded that El Chacal be tried and condemned for the murder of over 211 Sandinistas, committed over the last several years. At the same time, the National Patriotic Front (FPN), another irregular group, published their communique in which they demand punishment for the crimes committed against Sandinista peasants. They also declared their solidarity with the defense bands that are organizing to prevent evictions in different parts of the country. (Barricada 3/19) 8. Nicaragua connected to INTERNET The National Engineering University was connected officially to INTERNET last week after six years of preparation. Cost Rica is the only other Central American country connected to the computer network, which will be available to NGO's, universities and research centers in the country. Nicaragua's connection to the network was financed by the Organization of American States. (Barricada 3/19)